In honor of April being Financial Literacy month, the California Department of real estate is launching a campaign to teach our youth (grades 7 - 11) the fundamentals of responsible financial planning. This is a far cry from when I was in school and learned the basics of balancing a check book. Money used to burn a hole in my pocket. I learned financial literacy later in life, so I have always focused on teaching my son how to manage his money and guard his good credit rating and avoid the pitfalls.
I have never read, "Rich Dad, Poor Dad", but I imagine the book has everything to do with teaching financial literacy.
The focus of the upcoming classes will be on the importance of savings and how to save. Renting vs. owning, budgeting for a mortgage, taxes, expenses and maintenance of owning a property. Also types of loans will be covered which will include government loans such as FHA. They'll also teach how to choose a knowledgeable real estate agent.
The education will offer better understanding of money management while also offering knowledge of real estate transactions and financing. People will make better choices and few will fall victim to fraud or financial hardship.
While researching I came across this valuable piece info for tweens, teens, and young adults: Your Financial Plan, Where it All Begins. "Your journey toward savvy money management by learning about the financial planning process. People who “have it all” didn’t get there by accident." There are many more valuable resources on the CalCPA website.
We've been living in a material world, using credit cards to mask reality for so long. Children being given designer clothes, fancy gadgets, and so forth as EXPECTED. It's no wonder a lot of people grow up with a feeling of entitlement and very little understanding of the fundamentals of financial management. Appearances can be deceiving. Plus there is that instant gratification that is like a drug. More, more, more!!!
There will always come a point where the buck stops. We must have a plan, work towards a goal and be rewarded for achieving our goal. If it gets out of hand, all hell breaks loose and the results are.... well, really bad. I think teaching our youth how to be financially literate is a very wise decision. It's surely not a new concept, but by being adopted into our learning system, our schools, it will be beneficial to all.
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